Sensex falls 467 pts over trade worries

MUMBAI: The Indian markets slipped over 1% on Monday tracking weak Asian markets, as trade tension between the US and China lingered, while domestic macros continued to weaken. The Sensex ended at 37,922.17, down 467.65 points, or 1.22%, while the Nifty ended at 11,438.10, down 151 points or 1.30%. This is sharpest one-day loss in six months. US President Donald Trump said he was ready to impose tariffs on an additional $267 billion worth of Chinese goods on short notice, besides the proposed $200 billion Chinese imports. The August jobs report showed a healthy US labour market, indicating signs of wage inflation, which could clear the way for the US Federal Reserve to hike interest rates at least twice this year.

Hike in global interest rates may also push the dollar higher, triggering sell-offs by foreign institutional investors (FIIS). So far this year, FIIS have sold Indian equities worth $424.79 million, while domestic institutional investors (DIIS) have been net

buyers of ₹70,820.99 Indian shares.

However, Indian markets have outperformed emerging markets, with the MSCI Emerging Markets Index declining 11.69%, while the MSCI World Index gained 1.62%.

The rupee on Monday closed at a record low against the US dollar, while 10-year government bond yields jumped nearly 13 basis points after current account deficit (CAD) widened to a fiveyear high, stoking concerns of a fiscal slippage.

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